Question: Question 3 (5 points): Consider three bonds: a 6% bond maturing 6 months from now with current price of $99.42, an 8% coupon bond maturing

Question 3 (5 points): Consider three bonds: a 6% bond maturing 6 months from now with current price of $99.42, an 8% coupon bond maturing 1 year from now with current price of $100.57, and a 5% coupon bond maturing 5 years from now with current price of $87.20. All bonds have $100 face value. Assume also that 5-year spot rate is 8.2% a) (1 point) Find 6-month spot rate b) (1 point) Find 1-year spot rate c) (1 point) Find 1-year forward rate d) (2 points) Find the price of 5-year 9% coupon bond with face value of $100 Question 3 (5 points): Consider three bonds: a 6% bond maturing 6 months from now with current price of $99.42, an 8% coupon bond maturing 1 year from now with current price of $100.57, and a 5% coupon bond maturing 5 years from now with current price of $87.20. All bonds have $100 face value. Assume also that 5-year spot rate is 8.2% a) (1 point) Find 6-month spot rate b) (1 point) Find 1-year spot rate c) (1 point) Find 1-year forward rate d) (2 points) Find the price of 5-year 9% coupon bond with face value of $100
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